Solar Panel Recycling Market Size, Share, Growth & Industry Analysis, By Type (Crystalline Silicon, Thin Film), By Process (Thermal, Chemical, Mechanical), and Regional Analysis, 2024-2031

Solar Panel Recycling Market Size

Global Solar Panel Recycling Market size was recorded at USD 371.4 million in 2023, which is estimated to be valued at USD 413.1 million in 2024 and is projected to reach USD 961.7 million by 2031, growing at a CAGR of 12.83% from 2024 to 2031.

Rising emphasis on sustainability and circular economy initiatives, along with government regulations on waste management, is fostering the growth of the market. In the scope of work, the report includes services offered by companies such as First Solar, Veolia, Trina Solar, Canadian Solar, Hanwha Group, Reiling GmbH & Co. KG, SunPower Corporation, Aurubis AG, Yingli Solar, RENESOLA, and others.

The expansion of recycling infrastructure is becoming a critical component of the global solar panel recycling market. As the number of solar panels installed increases, a corresponding rise in end-of-life panels is anticipated to lead to a rising demand for recycling facilities.

Limited existing infrastructure in many regions has created challenges in managing large volumes of decommissioned panels. However, with governments implementing stringent regulations on electronic and solar waste management, investing in recycling infrastructure is likely to be essential.

• In March 2024, We Recycle Solar formed a strategic partnership with Renewables.org to advance clean energy and sustainable practices in solar panel recycling. This collaboration aims to accelerate the global transition to solar power, enhance end-of-life panel management, and support sustainable practices in developing markets.

New facilities designed for efficiently processing solar panels assist in meeting these regulatory requirements and enable the recovery of valuable materials such as silicon, silver, and glass. This creates a circular economy, facilitating the reuse of raw materials in the production of new panels and thereby reducing the overall environmental footprint. Moreover, expanding infrastructure presents job opportunities and addresses the growing issue of solar waste accumulation, which is expected to surge as panels reach their 25-30 year lifespan.

Solar panel recycling refers to the process of recovering valuable materials from decommissioned or damaged photovoltaic (PV) panels to reduce environmental impact and enable the reuse of these components in new solar systems. Solar panels are primarily composed of glass, silicon, aluminum, and other materials, all of which can be recycled. There are different types of solar panel recycling processes, including mechanical, chemical, and thermal recycling.

Mechanical recycling involves physically breaking down panels to separate materials such as glass, metals, and plastic. Chemical recycling uses solvents to extract specific materials such as silicon and metals, while thermal recycling applies high heat to vaporize certain components and recover others.

Monocrystalline and polycrystalline panels, the two most common types, require slightly different processes due to their structural differences. Effective solar panel recycling is crucial for ensuring that the materials used in PV systems are kept within the production cycle. This practice minimizes the need for virgin materials and lowers the carbon footprint of solar energy.

Analyst’s Review

Key players operating in the global solar panel recycling market are adopting multi-faceted strategies to gain competitive advantages and capitalize on emerging opportunities.

Companies are investing heavily in research and development to develop more efficient recycling technologies, enabling the recovery of higher percentages of valuable materials such as silicon, copper, and rare metals. In addition to technological advancements, numerous firms are forming strategic partnerships with solar panel manufacturers to create a closed-loop supply chain, where recycled materials are reintegrated into new products.

• For instance, in February 2024, SOLARCYCLE, in collaboration with Georgia Governor Brian P. Kemp, announced a USD 344 million investment in a solar glass manufacturing facility in Cedartown, creating over 600 full-time jobs. This facility, the first in the U.S. to use recycled materials from retired solar panels, is designed to produce new solar glass.

This lowers production costs aligns with global trends toward sustainability and circular economies. Market growth is further fueled by regulatory pressures, prompting several companies to enhance their recycling capacity and infrastructure to meet future demands.

However, key imperatives include overcoming high processing costs and ensuring the scalability of their operations as panel waste volumes rise. Companies that successfully address these challenges are anticipated to lead the market in the coming years.

Solar Panel Recycling Market Growth Factors

The growing emphasis on sustainability and circular economy initiatives is stimulating the expansion of the market. Companies and governments worldwide are increasingly focusing on creating more sustainable practices that minimize waste and optimize the use of resources. Solar panel recycling plays a vital role in contributing to a circular economy by facilitating the recovery and reuse of valuable materials such as silicon, silver, and aluminum in the production of new panels.

• For instance, in 2023, the International Renewable Energy Agency (IRENA) projected that global solar PV waste is anticipated to rise from 0.2 million tons in 2021 to 4 million tons by 2030, nearly 50 million tons by 2040, and over 200 million tons by 2050. G20 countries are expected to contribute significantly to this projected waste increase.

Decommissioned solar panels are integrated into the production chain instead of being disposed of in landfills, reducing the demand for mining new raw materials and minimizing the environmental impact of solar energy production. Regulatory frameworks that promote sustainability and circularity are being established to prompt solar companies to adopt recycling practices. This shift reduces costs and aligns with global environmental goals, making it an essential factor for future growth of the solar panel recycling market.

Recycling multi-layered panels presents a significant challenge to the development of the solar panel recycling market. Multi-layered panels, composed of various materials, coatings, and laminations, are more difficult to disassemble and process compared to standard photovoltaic (PV) panels. These panels consist of multiple layers of glass, silicon, polymers, and rare metals that are securely bonded together, complicating the efficient recovery of valuable components.

The intricate separation process often requires specialized equipment, increasing operational costs and processing time. Furthermore, some recycling techniques may not be effective for all layers, leading to lower recovery rates for certain valuable materials such as silver and copper.

Addressing this challenge requires advancements in recycling technology and tailored processes for handling multi-layered panels. The development of dedicated technologies and specialized processes for different layers, along with strategic collaborations with recycling facilities and manufacturers, enhances the efficiency of multi-layered panel recycling by simplifying processes and improving material recovery.

Solar Panel Recycling Industry Trends

The rising demand for solar energy is fostering the expansion of in the solar panel recycling market, as an increasing number of panels approach the end of their life cycle in the coming years. Solar energy is becoming a key solution to meet global energy needs, especially as governments and industries shift toward renewable energy sources to combat climate change. The growing adoption of solar power in both residential and commercial sectors is leading to a rise in global solar installations.

• For instance, in January 2024, the International Energy Forum (IEF) reported that global energy generation from solar photovoltaic panels increased by 270 TWh in 2023, reflecting a 26% rise from the previous year. Despite the promising growth, scaling solar power to meet net-zero targets remains challenging, requiring a 20% annual increase in capacity until 2030. The International Energy Agency (IEA) noted that renewable energy capacity worldwide grew by 50% in 2023, reaching nearly 510 GW, with solar PV accounting for three-quarters of this growth.

As solar installations age, in the demand for efficient recycling solutions for panels is estimated to increase. Moreover, this trend is supported by ongoing innovations in solar technology, which are making solar panels more affordable and accessible. As the solar industry expands, the need for sustainable disposal and recycling of panels is likely to be crucial in the solar energy supply chain. This growing demand ensures a continuous supply of decommissioned panels, thereby fueling the expansion of the recycling market.

Segmentation Analysis

The global market has been segmented based on type, process, and geography.

By Type

Based on type, the market has been segmented into crystalline silicon and thin film. The crystalline silicon segment captured the largest market share of 58.54% in 2023, largely attributed to its widespread adoption in solar energy systems and its long-standing dominance in the photovoltaic (PV) market.

Crystalline silicon, which includes both monocrystalline and polycrystalline solar panels, is known for its high efficiency and durability, making it the preferred choice for residential, commercial, and industrial solar installations worldwide. Its proven performance in delivering stable and efficient energy output has made it a reliable material in the solar industry.

The global market’s focus on increasing energy efficiency, coupled with the declining costs of crystalline silicon panels due to advancements in manufacturing techniques, has further bolstered its demand. Additionally, many aging crystalline silicon panels are approaching the end of their lifecycle, contributing significantly to the growth of the segment. The recovery of valuable materials such as silicon, silver, and glass from these panels enhances their recyclability, positioning this segment for continued dominance in the coming years.

By Process

Based on process, the market has been classified into thermal, chemical, and mechanical. The thermal segment is poised to record a staggering CAGR of 13.18% through the forecast period, mainly due to its efficiency in processing end-of-life solar panels. Thermal recycling, which involves using high temperatures to break down solar panels and recover materials such as metals, has emerged as a key technology in the solar panel recycling market.

One of the main advantages of this process is its ability to handle complex, multi-layered panels that contain various bonded materials, which are difficult to separate using mechanical methods. The growing volume of decommissioned solar panels and the increasing demand for more efficient recycling methods are fueling the adoption of thermal recycling techniques.

Furthermore, advancements in thermal technologies are enabling higher recovery rates of valuable materials, particularly rare metals and silicon, which are crucial for manufacturing new solar panels.

Solar Panel Recycling Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Europe solar panel recycling market accounted for a substantial share of 36.45% and was valued at USD 135.4 million in 2023. This dominance is reinforced by the region's proactive approach to sustainability and stringent regulations on waste management.

European countries have established comprehensive frameworks to address the environmental impact of solar panel waste, including mandates for extended producer responsibility and recycling targets. These regulations have promoted investments in recycling technologies and infrastructure, thereby supporting regional market expansion.

Additionally, Europe’s advanced recycling facilities are equipped with state-of-the-art technologies that enhance the recovery of valuable materials such as silicon, silver, and glass from decommissioned panels.

• In 2024, The European Environment Agency highlights several initiatives for solar panel recycling, including ReProSolar, Photorama, and Icarus. These projects focus on recovering all panel elements at an industrial scale, improving PV recycling technologies, and enhancing silicon recovery rates, respectively, contributing to advancing the EU's recycling capabilities.
• In June 2023, ROSI inaugurated the world’s first large-scale industrial solar recycling plant in France, designed to recover high-value materials. This pioneering facility is capable of retrieving and reusing up to 99% of components, including silver and copper, setting a new benchmark for efficiency in solar panel recycling.

The region’s strong emphasis on circular economy principles further supports the growth of the Europe market. The increasing installations of solar panels and the aging of early-generation panels are contributing significantly to regional market expansion, as these panels approach the end of their operational life and require efficient recycling solutions.

Asia-Pacific solar panel recycling market is poised to grow at the highest CAGR of 13.78% in the forthcoming years, primarily due to rapid expansion in solar energy installations and increasing regulatory support for recycling. This growth is further supported by the region's burgeoning solar market, with countries such as China, India, and Japan leading in solar panel deployment.

With the increasing volume of installed solar panels rising, the demand for effective recycling solutions to manage end-of-life panels is growing. Additionally, several Asia-Pacific countries are implementing stricter regulations and incentives to promote recycling and manage solar waste sustainably.

• As of August 2024, India’s solar energy capacity has expanded 30-fold over the past nine years, reaching 89.4 GW, according to Invest India. The National Institute of Solar Energy (NISE) estimates the country’s solar potential at 748 GWp, underscoring significant growth and potential opportunities in the solar sector.

The region's diverse and rapidly evolving energy landscape, coupled with advancements in recycling technologies, is facilitating the growth of the Asia-Pacific market. Furthermore, emerging economies in the region are investing in recycling infrastructure to address environmental concerns and capitalize on the economic opportunities associated with material recovery, thereby supporting regional market growth.

Competitive Landscape

The global solar panel recycling market report will provide valuable insights with a specialized emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to expand their product portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as expansion of services, investments in research and development (R&D), establishment of new service delivery centers, and optimization of their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Solar Panel Recycling Market

• First Solar
• Veolia
• Trina Solar
• Canadian Solar
• Hanwha Group
• Reiling GmbH & Co. KG
• SunPower Corporation
• Aurubis AG
• Yingli Solar
• RENESOLA

Key Industry Developments in Solar Panel Recycling Market

• April 2024 (Launch): TERREPOWER, a division of BBB Industries, unveiled an advanced solar panel recycling line at its Sparta, Tennessee facility. This technology enables the comprehensive separation and recovery of materials such as aluminum, glass, and precious metals, thereby enhancing efficiency compared to traditional methods and reinforcing TERREPOWER's commitment to sustainable practices.
• February 2024 (Launch): Veolia advanced its local decarbonization efforts by installing solar panels on its restored landfills across France. This initiative aims to achieve energy self-sufficiency for Veolia’s services in France, with over 40 solar projects planned to deliver a total capacity of 300 MW. The first installations are expected to be operational by 2027.

The global solar panel recycling market is segmented as:

By Type

• Crystalline Silicon
• Thin Film

By Process

• Thermal
• Chemical
• Mechanical

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America